The Present : The

development of
modern accounting
standards and
commerce
Development of Accounting
 Accounting is often referred to as one of the oldest
professions and referred as one of the newest and
most rapidly growing professions.

 Old as civilization- When accounting is considered in

broad general terms as the recording and
communication of financial data or economic data.

 Very new- When accounting is considered in a truly

professional sense, as a highly developed and
systematized method of collecting, interpreting , and
controlling economic data.
 21st Century –Accounting
Regulation in Modern
Commerce

 Beyond the industry’s self regulation ,the state also

sets accounting standards.

 The American Institute of Certified Public

Accountants (AICPA) has developed standards of
performance for auditors designed both to ensure
independence and to protect against liability for
inadequate audit work.
The twenty-first century
 The accountant, the accounting firm and the accounting
profession of the twenty-first century are quite different
from what existed at the beginning of the twentieth
century.

 In contrast to bookkeeper manually recording entries in a

large bound volume ,an accountant is now responsible for
information concerning all facets of a business and is
dependent on the latest technology for processing
information.

 In contrast to small local firms ,accounting firms now can

be large international organizations with reported
revenues of billion of dollars.
 Accounting firms provide their clients with tax services ,
financial planning ,system analysis, consulting and legal
sevices.

 At the beginning of 20th century ,the accounting

profession was just emerging

 Today, the profession is comprised of thousands of men

and women working in public and private firms as well as
profit and non- profit organizations as members of
management teams or as valued consultants.
 Modern Accounting

 Modern accounting has developed in

response to changes in the legal
structure of companies ,as well as to
rising public demand for accurate reports
and to government regulations.
Recent History and Growth

 The constantly increasing size of business firms has

been accompanied by an increased need on the part of
government, creditors, investors, employees for
increased economic data properly summarized and
interpreted.

 This has created a growing needs for accountants.

 Accountants now active in preparing budgets. They are

consulted by business executives on tax and financial
matters.